Sydney landmark Luna Park hits the market

The harbourside attraction has had its own ups and downs as well, including several closures over its long history and more recently a planning battle in 2018 over a new ride.

The site is heritage listed and its status as an amusement is protected by government legislation.

Brookfield took control of Luna Park in 2007 as part of its acquisition of builder Multiplex, which owned the amusement park at the time.

But the Canadian giant is ready to hand the fun times over to a new owner as it looks to pursue development opportunities in a portfolio that mostly holds premium office space, warehouses, seniors’ living and student accommodation.

“As we focus our Australian portfolio on core assets, it’s time for Luna Park to transition to new custodians, who can steer the business through to its next phase of growth and ensure it remains an icon of the harbour city,” Brookfield head of real estate investments Ruban Kaneshamoorthy said.

Mr Kaneshamoorthy said Brookfield had spent $40 million in the past four years to prepare the amusement park for sale with new additions such as the $15 million Immersive Big Top.

The Immersive Big Top replaced the Big Top live venue with a multipurpose entertainment facility packed with the latest projection, audio and lighting technologies.

Luna Park Sydney has 17 amusement rides, the heritage-listed Coney Island building, 7000 square metres of building floor space and a 389-space car park.

Luna Park Sydney chief executive John Hughes said the additions of the Immersive Big Top and new rides over the past four years had led to record visits and further work was being considered.

“Our outstanding management team is pursuing a strong pipeline of new opportunities that will further add value to the business,” Mr Hughes said.

The harbourside offering comes amid a post-pandemic surge in demand for entertainment assets and operations, with a number of local and global corporate players likely to be interested.

But interest could also come from motivated and cashed-up private investors, as it did in Melbourne in 2005 when Rich Lister trucking magnate Lindsay Fox steered a consortium that took ownership of the southern capital’s Luna Park.

In Sydney, Brookfield has appointed CBRE’s Simon Rooney, James Douglas and Paul Ryan to handle the sale campaign.

The amusement park was expected to generate significant domestic and international hospitality players, with plenty of scope to add more entertainment and hospitality options to the precinct, Mr Rooney said.

“Trophy assets such as Luna Park are tightly held and rarely traded, with the campaign providing an opportunity to secure a world-class entertainment, event and experience destination with further upside,” he said.